Retail`s Impact - National Retail Federation

RETAIL’S IMPACT
Retail Supports 1 in 4 American Jobs
42 MILLION STRONG
nr f.c o m/ r et a ilsimp a ct
NRF is the world’s largest retail trade association, representing discount and department stores, home
goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet
retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector
employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to
annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights
the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical
role that retail plays in driving innovation.
www.nrf.com
RETAIL’S IMPACT
As one of America’s largest industry sectors and the
largest private-sector employer, retail drives virtually
every facet of our economy and supports tens of
millions of jobs. Retail is the leading indicator on a host
of economic measures, from job growth and consumer
spending to sales and inventory. Retailers – large and
small – support one out of every four American jobs.
Retailers are our country’s small businesses – the heart
around which communities are built, grow and prosper.
Retail’s impact is everywhere.
Find Out More At
nr f. co m/ r et a ilsimp a c t
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RETAIL DRIVES THE U.S. ECONOMY
Retail is the largest private-sector employer in the United States, supporting one out of every
four jobs. A healthy and vibrant retail industry delivers a powerful impact across our economy.
Retail Employs More People Than Any Other Industry
1
#
Private Sector
Employer
Retailers directly provide 29 million American jobs.
Direct Employment by Industry
Employment (Jobs)
GDP ($Billion)
Retail trade (including food services and drinking places)
28,984,100
$1,242.4
Health care and social assistance
19,855,000
$1,078.2
Manufacturing
12,596,500
$2,034.3
Professional, scientific and technical services
12,244,700
$1,140.2
Administrative and waste management services
11,087,500
$489.4
The retail industry supports a total of 42 million jobs in retail and
a host of other industries – 23.4% of total U.S. employment.
Supports One in Four
U.S. Jobs
The U.S. Retail Industry’s Total National Impact
Item
Employment (Jobs) (1)
Labor Income
(2)
GDP
The U.S. Retail Industry’s Direct National Impact
Total National
Impact
Percent of
U.S. Economy
Item
Direct National
Impact
Percent of
U.S. Economy
42 million
23.4%
Establishments (3)
3,793,622
12.0%
$1.58 trillion
16.1%
Employment (Jobs)
29 million
16.1%
$2.59 trillion
16.0%
Labor Income
$822.5 billion
8.4%
$1.2 trillion
7.7%
GDP
Benefits over
13
MILLION
Non-retail Jobs
13 million American jobs across almost every industry
depend upon retail for their sucess – including 7
million jobs in the service sector; 2 million jobs in
finance, insurance and real estate; and 1 million jobs
in manufacturing.
Source: All data comes from the PwC report, The Economic Impact of the U.S. Retail Industry except where otherwise noted. The retail industry is defined as including retail, food
services and drinking places. Unless otherwise noted, the total impact statistics combine the industry’s direct, indirect and induced impacts.
(1)
Employment is defined as the number of payroll and self-employed jobs,including part-time jobs.
(2)
Labor income is defined as annual wages and salaries and benefits as well as proprietors’ income.
(3)
An establishment is a single physical location at which business is conducted. A business may consist of more than one establishment.
2
National Retail Federation
Retail Generates Trillions for Our Economy
$2.59 Trillion in Total GDP
Impact: 1/6 of the U.S. GDP
Supports over $1 Trillion
of GDP in Other U.S.
Industries
$1.58 Trillion in Wages
and Benefits
The industry’s total GDP
economic impact includes
$75.9 billion from capital
investment and $2.5 trillion
from operational impact.
Every dollar of retail
sales generates massive
economic benefits for other
sectors. In 2012, the retail
industry directly added $1.2
trillion to the GDP. Through
its indirect and induced
impacts, the retail industry
supports $1.4 trillion of GDP
by other industries.
The retail industry’s total
impact on wages, salaries
and benefits in 2012
represented 16 percent of
the nation’s total wages.
“Any time that somebody buys a shoe from my
store, the money is recirculated through the
economy ... it’s just one big constant circle, and
we’re the hub of it all. And we love it, because
we’re retail.”
Jim Adams
Owner, Falls Road Running Store
Baltimore, Maryland
“Retail is bigger than we really know ... While
I love owning my own boutique, traveling to
L.A. on monthly buying trips and orchestrating
photo shoots, my true passion is about creating
opportunities. For example, this business has
helped 22 employees find their purpose and
calling in life.”
Tanna Dang
Co-owner, Eden in Love
Honolulu, Hawaii
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RETAIL IS SMALL BUSINESS
Retailers are the heart of every local community. Small businesses and entrepreneurs are
engines of local commerce, employing and serving their neighbors.
Most Retail Companies are Small Businesses
98.6%
of all Retail Businesses
Employ Fewer Than
(4)
50
People
Close to
40%
11.5 million people – or 40% of retail employees – work for
companies with fewer than 50 employees.
of Retail Employees
Work for Small
Businesses
95%
of all Retailers
Operate Just One
Location
(4)
4
The latest Economic Census shows that the overwhelming majority
of retailers are small businesses, with more than 95% operating a
single location.
Source: PwC calculations based on data from the U.S. Bureau of Economic Analysis and the U.S. Census Bureau for the retail industry, including food services and drinking places.
National Retail Federation
In a small town of 6,000 people, Mork’s
restaurant sold 38,000 Blizzards in one day to
raise money for the Children’s Miracle Network –
more than any DQ in the country. As Mork says,
“That’s what makes small towns work, people
that are deeply vested in their community.”
DeLon Mork
Owner, Dairy Queen
Madison, South Dakota
“I’m a big fan of small mom-and-pop businesses.
I believe they are the backbone of our economy.
They are what creates the middle class jobs that
we all need ... My ‘aha moment’ was realizing
what an impact a small business like this can
have.”
Andrew Brewer
Owner, Onion River Sports
Montpelier, Vermont
“Leaving my career in journalism to open a retail
store was the best decision I’ve ever made.
It’s changed my life and the lives of my loyal
Monmouth customers. Retail not only means
jobs, but a chance for community revitalization
and growth.”
Susan Kaufmann
Owner, Market Alley Wines
Monmouth, Illinois
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RETAIL MEANS JOBS
Retail not only employs the most people of any industry, but it also offers and supports jobs
in a wide variety of highly sought-after occupations like finance, advertising, design and
technology. The career opportunities are endless.
Retail Offers Dozens of
HIGHLY
Desirable Careers
Retail jobs aren’t just sales
jobs. The industry directly
provides more than 60,000
jobs for software developers
and programmers; almost
73,000 jobs for security
guards; 103,000 jobs in
advertising, marketing, PR
and sales management; and
over 143,000 jobs for arts and
design workers.
Retail Supports
MILLIONS
of Jobs in Diverse Occupations
143,000
103,000
60,000
73,000
It’s not just about the jobs directly in retail. The
industry supports nearly 5 million logistics jobs;
4 million management and administration jobs;
2 million health care and service jobs; 2 million
finance, insurance and real estate jobs; and 800,000
technology jobs.
Retail-Supported Jobs by Occupation
6
LOGISTICS/
TRANSPORTATION
MANAGEMENT
HEALTH CARE
& SERVICE
INSURANCE &
REAL ESTATE
TECHNOLOGY
4,970,892
JOBS
4,365,111
JOBS
2,376,981
JOBS
1,812,791
JOBS
809,546
JOBS
National Retail Federation
“There are so many aspects of the business that
you go through to just put that clothing on a rack.
When you get into it and you really see it, you
have a lot more respect for the people that are
within those four walls.”
Andrea Shimer
Human Resources Director, Old Navy
Sydnor started his career in the U.S. Navy and
says his military background taught him formal
and informal leadership and accountability skills,
which are important in his retail career. His work
at REI gives him the chance to make a difference
in many people’s lives.
Tom Sydnor
Director of Distribution Center Operations, REI
Claudine has worked in the retail industry at
Walmart for over 17 years. Her career path has
given her the opportunity to grow from a parttime sales clerk to a store manager all while
obtaining her bachelor’s degree and working on
a master’s degree. Claudine says, in retail, “With
hard work and determination, the sky’s the limit.”
Claudine McKenzie
Store Manager, Walmart
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RETAIL IS EVERYWHERE
From Alaska to Wyoming, retail supports and sustains the economies of all 50 states and the
District of Columbia.
20%
The retail industry supports at least one in every five jobs in all 50
states and accounts for at least 100,000 jobs in 47 states.
of Jobs in
Every State
Share of State Jobs Supported by Retail
22%
25%
24%
24%
24%
23%
20%
22%
24%
24%
23%
23%
23%
25%
21%
23%
23%
22%
22%
23%
24%
22%
23%
20%
National Retail Federation
23%
23%
22%
23%
24%
26%
24%
23%
26%
24%
8
24%
23%
23% 23%
26%
22%
21%
24%
22% 23%
26%
23%
22%
22%
11%
21%
24%
Top-Ten Retail States by Total Impact
1 California
6 Illinois
Employment (f)
Labor Income (g)
Employment (f)
GDP
Labor Income (g)
GDP
4,713,568
22.8%
$204,975
16.1%
$329,995
15.5%
1,654,599
22.1%
$65,437
15.0%
$106,856
15.2%
Jobs
State Total
Million
State Total
Million
State Total
Jobs
State Total
Million
State Total
Million
State Total
2 Texas
7 Ohio
Employment (f)
Labor Income (2)
Employment (f)
GDP
Labor Income (g)
GDP
3,509,910
23.2%
$131,931
15.5%
$223,693
15.3%
1,584,470
23.9%
$53,873
16.0%
$87,507
16.0%
Jobs
State Total
Million
State Total
Million
State Total
Jobs
State Total
Million
State Total
Million
State Total
3 Florida
8 Georgia
Employment (f)
Labor Income (g)
Employment (f)
GDP
Labor Income (g)
GDP
2,698,722
26.0%
$96,167
20.5%
$158,440
20.6%
1,280,578
23.5%
$44,916
16.6%
$75,615
17.3%
Jobs
State Total
Million
State Total
Million
State Total
Jobs
State Total
Million
State Total
Million
State Total
9 North Carolina
4 New York
Employment (f)
Labor Income (g)
Employment (f)
GDP
Labor Income (g)
GDP
2,392,260
20.9%
$108,543
13.7%
$174,026
13.6%
1,258,765
23.3%
$41,739
16.0%
$70,490
15.6%
Jobs
State Total
Million
State Total
Million
State Total
Jobs
State Total
Million
State Total
Million
State Total
5 Pennsylvania
Employment (f)
10 Michigan
Labor Income (g)
Employment (f)
GDP
Labor Income (g)
GDP
1,681,602
23.1%
$60,711
15.0%
$95,948
15.2%
1,250,666
23.8%
$42,146
16.1%
$69,795
16.7%
Jobs
State Total
Million
State Total
Million
State Total
Jobs
State Total
Million
State Total
Million
State Total
Top-Ten Retail Congressional Districts
by Direct Employment
Rank
Retail directly provides at least
50,000
jobs in 90% of all
Congressional Districts.
Congressional
District
Employment
(Jobs)
Labor Income
($Million)
GDP
($Million)
Retail
Establishments
1
NY-12
187,332
$8,874
$11,951
23,734
2
NY-10
137,650
$6,321
$8,485
19,114
3
TX-24
123,215
$3,747
$5,700
14,861
4
MT-1 (At-Large)
110,964
$2,760
$3,506
16,449
5
CA-33
108,600
$3,515
$5,315
14,772
6
CA-12
105,321
$4,523
$5,920
15,858
7
NV-1
101,683
$3,234
$5,084
10,335
8
MO-2
99,694
$2,654
$3,714
10,119
9
FL-22
97,760
$2,966
$4,377
15,482
10
SD-1 (At-Large)
97,450
$2,308
$3,608
13,867
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